Inter-Ethnic Redistribution and Human Capital Investments
AbstractThis article analyzes income redistribution in the inter-ethnic context. The model shows that redistribution in favor of less prosperous ethnic minorities raises fertility among the unskilled minority recipients, lowers fertility among the contributing local skilled, slows human capital accumulation, and reduces the per-capita output growth. The analysis also demonstrates that income redistribution, although financed by taxes levied on the skilled, generates a mechanism that, via its disincentive effect on human capital investment, works strongly against another weak segment of society – the local unskilled. This may provide a purely economic explanation for antipathy toward minorities, especially, among less educated.
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Bibliographic InfoPaper provided by Department of Economics, Bar-Ilan University in its series Working Papers with number 2009-01.
Date of creation: Jan 2009
Date of revision:
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Postal: Faculty of Social Sciences, Bar Ilan University 52900 Ramat-Gan
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redistribution; ethnic diversity; fertility; human capital; economic growth;
Find related papers by JEL classification:
- D3 - Microeconomics - - Distribution
- J1 - Labor and Demographic Economics - - Demographic Economics
- O0 - Economic Development, Technological Change, and Growth - - General
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- Leonid Azarnert, 2009.
"Après nous le Déluge: Fertility and the Intensity of Struggle against Immigration,"
2009-15, Department of Economics, Bar-Ilan University.
- Leonid Azarnert, 2010. "Après nous le Déluge: fertility and the intensity of struggle against immigration," Journal of Population Economics, Springer, vol. 23(4), pages 1339-1349, September.
- Leonid V. Azarnert, 2010. "Après nous le Déluge: Fertility and the Intensity of Struggle against Immigration," CESifo Working Paper Series 3064, CESifo Group Munich.
- Leonid Azarnert, 2010. "Juvenile imprisonment and human capital investment," Journal of Economic Inequality, Springer, vol. 8(1), pages 23-33, March.
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